Asian Paints Q1 Results Review - Market Dynamics Yet To Play Out; Reduce: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Asian Paints Ltd. maintained double-digit volume growth guidance for FY25, having overcome major headwinds in Q1, green shoots in rural markets, improved monsoon conditions, increase in infra activities post elections and hopes of positive festive season impact. The domestic outlook remains positive across decorative, auto, and industrial segments, while International business faces uncertainty due to geopolitical issues. The Home décor segment is sustaining growth while economy paints are likely to benefit from recently launched Neo Bharat..However, we cut FY25/26/27 EPS estimates by 10.4%/8.4%/6.3% due to limited margin improvement potential (all-time high levels ex Covid year) due to material price inflation (1% price hike in July, more might follow), increased spending on distribution, advertising, and supply chain amid rising competitive intensity following Grasim’s entry. Next few quarters are crucial to assess the impact of Birla Opus on the market and Asian Paints. We now estimate decline of 7.2% in FY25 PAT (24.5% in Q1) and 4.1% growth in FY26. Asian Paints trades at 54 times FY26 earnings per share and 52.7 times June26 EPS. We cut DCF based target price to Rs 2605 (Rs 2672 earlier). Retain Reduce rating on the stock..Click on the attachment to read the full report:.Asian Paints Q1 Results Review - Demand Remains Sluggish; Maintain Hold: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Asian Paints Q1 Results Review - Market Dynamics Yet To Play Out; Reduce: Prabhudas Lilladher

Next few quarters are crucial to assess the impact of Birla Opus on the market and Asian Paints, says the brokerage.

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